Voyager Midstream acquires Phillips 66 natural gas assets to expand Haynesville shale operations

Voyager Midstream Holdings, backed by Pearl Energy Investments, has announced its acquisition of natural gas gathering and processing assets from Phillips 66. This acquisition, which spans Panola, Rusk, and Harrison counties in Texas and Caddo Parish in Louisiana, strategically places Voyager Midstream Holdings at the heart of the highly productive Haynesville Shale region.

The acquired assets include approximately 550 miles of natural gas pipelines, compression facilities, 400 million cubic feet per day of active cryogenic gas processing capacity, and 12,000 barrels per day of liquids fractionation capacity. Among these assets is the Carthage Hub, a crucial integrated natural gas trading and delivery hub with a capacity to handle over one billion cubic feet per day. This hub provides key interconnectivity to multiple markets across the United States, including premium Liquefied Natural Gas (LNG) markets in Texas and Louisiana.

A Strategic Move for Growth

The acquisition significantly enhances Voyager’s infrastructure in a region known for its rich natural gas deposits. Will Harvey, Voyager’s Chief Executive Officer, stated, “This transaction with Phillips 66 represents an important milestone for Voyager, as it positions us for significant growth in the core of the Haynesville Shale. We are committed to growing our infrastructure footprint in East Texas and North Louisiana and improving producer connectivity and netbacks.”

Stewart Coleman, a Partner at Pearl Energy Investments, echoed this sentiment, emphasizing the strategic nature of the acquisition. “Voyager’s acquisition of these high-quality assets positions the company for growth and success within the Haynesville, one of the preeminent shale plays with strategic connectivity to the U.S. Gulf Coast.”

Commitment to Safety and Community

Beyond the strategic benefits, the acquisition also comes with a commitment to safety and community engagement. Martin McHale, Chief Operating Officer of Voyager Midstream Holdings, remarked, “As a company, Voyager is committed to safety, environmental stewardship, and giving back to the communities where we work and live. We are honored to welcome Phillips 66’s East Texas employees into the Voyager family as part of this acquisition.”

Strengthening Position in the Haynesville Shale

The acquisition marks a significant step forward for Voyager Midstream Holdings in establishing itself as a key player in the Haynesville Shale, a region known for its rich natural gas resources and proximity to premium LNG markets. With new assets and infrastructure in place, Voyager is well-positioned to expand its operations, drive growth, and strengthen its presence in the East Texas and North Louisiana regions.

Why Phillips 66 took up the sale

Phillips 66’s decision to divest these non-core assets aligns with its broader strategy to streamline its portfolio and focus on core business areas. Since 2022, Phillips 66 has been actively divesting assets, generating $1.1 billion toward its goal of over $3 billion. This includes the recent sale of its 25% interest in the Rockies Express Pipeline LLC. Although the exact purchase price of the sale to Voyager was not disclosed, a related update indicated a $200 million sale of U.S. Gulf Coast gathering and processing assets in Q3 of 2024